What are causes of globalisation?

Improvements in transport infrastructure and operations: Resulted in quick, reliable and cheap methods to allow production to be seperated around the world. 2. Improvements in IT and communication: Allow companies to operate across the globe. 3. Trade liberalisation and reduced protectionism: Made it cheaper and more feasible to trade so countries are able to exploit their comparative advantage. 4. Growth of trading blocs: Trading blocs e.g. EU and ASEAN have become more integrated promoting more free trade and easier movement of labour. As a consequence more trade and labour migration is promoted and FDI is likely to increase leading to the greater integration of these economies. 5. Growth of multinational corporations (MNCs): As technology improves, mobility of labour is easier and access to world markets are easier, MNC can become very large in terms of profitability and production levels. As a consequence, to expand further and tap into international markets MNCs will move and operate in various countries leading to greater interdependence.

Answered by Jamie A. • Economics tutor

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